As many of you know, Thomas returned to the United States this year and was able to verify his IRS Enrolled Agent information, as a result we are happy to inform you that we are now able to electronically file returns for clients going forward, in a bit of rare, good news from the IRS, they have just this fall start accepting the electronic filing of amended returns if they meet certain qualifications. This will greatly speed processing times. However, streamline returns would still be required to be sent by parcel.
IRS has been sending out advance Child Tax Credit letters. If you received advance payments, when you file your 2021 tax return, we will need to compare the advance Child Tax Credit payments that you received during 2021 with the amount of the Child Tax Credit that you can properly claim on your 2021 tax return. In January 2022, the IRS is scheduled to send you Letter 6419 to provide the total amount of advance Child Tax Credit payments that you received in 2021. Please keep these and any other IRS letters you received about advance Child Tax Credit payments and provide them to us when you file.
If you received less than the amount that you are eligible for, you will claim a credit for the remaining amount of Child Tax Credit on your 2021 tax return. If you received more than the amount that you are eligible for, you may need to repay the excess payment when you file.
After December 31st, 2021 we will need to request any missing third stimulus payments on your 2021 tax return by claiming the Recovery Rebate Tax Credit. This is the case if you received a partial amount (less than the full stimulus payment amount of $1,400) or didn’t previously qualify for the third stimulus payment. If you have not received the third payment, we will include it on the return.
As many of you have already experienced, millions of Americans are still waiting for their income tax returns and refunds to be processed. The IRS is still dealing with delays due to the pandemic, they are understaffed, and their systems for processing have delayed many of your returns. Some of you have received letters requesting additional information, “original signature”, or have required additional resolution (some requiring the IRS Taxpayer Advocate Service). Individuals have received letters from the IRS requesting payments, threatening levies, or further action before the IRS has processed the information and payments previously received.
Correspondence sent to the IRS was not being timely processed, resulting in a tremendous backlog of mail. As for the IRS phone line, it was often impossible to connect. We have often had to wait hours on hold with multiple disconnections, because the system is so bad. I have learned to call at exactly 8 A.M. Eastern time when the East coast offices open.
The IRS will start accepting returns January 24th.
The tax year 2021 adjustments described below generally apply to tax returns filed in 2022. The tax items for tax year 2021 of greatest interest to most taxpayers include the following dollar amounts:
Standard Deduction Amounts 2021
| Filing Status | Standard Deduction Amount |
| Single | $12,550 |
| Married Filing Jointly | $25,100 |
| Married Filing Separately | $12,550 |
| Head of Households | $18,800 |
Foreign Earned Income Exclusion for 2021 is $108,700 up from $107,600 for tax year 2020.
Deadlines for filing for individuals residing outside the United States is June 15th and October 15th with an extension filed. Tax not paid by April 15th will accrue interest. We recommend scheduling an appointment as soon as you are able to assure your taxes are completed and processed as quickly as possible.
Thomas M. Carden E.A. J.S.M.
